Trend of Bitcoin Crash
As of the 18th of December, bitcoin prices hover around the 3600$ mark, fluctuating between 3500$ and 3620$ price range. This is not the lowest Bitcoin prices have hit this year, it crashed as low as 3200$ just a few days ago. The alarming trend of bitcoin price crashes is simply outstanding and has led to massive panic among investors. While bitcoin has gone down about 70% from its boom last year, some of the altcoins have fared even worse with drops up to 90%. From an all-time high of $20,000 which goaded many to invest their savings into it, down to $3600, bitcoin has seen a crash of about 80%. The question remains. Can it come back up?
The History of the Crashes
Let’s take a trip down cryptocurrency memory lane. The first-time investors went through this kind of panic was back in 2011, when bitcoin went from $39 in June to $2 come November. This 93% crash as compared to a similar 83% crash in April 2013 when it went from $259 to $45 within a three-day period. After this came the Mt. Gox hack in November 13’, which saw Bitcoin plummet from $1151 to $177, a trend that only ended in 2015 January. These crashes were trailed with the massive drop in trade/transaction volumes. Massive sell-outs always pre-empt or coincide with these price crashes, after which they will level out, dipping to a point before coming back up.
As it has been seen, BTC has undergone some pretty massive crashes in the past. The only difference in 2018’s price drop is the height from which the drop happened. The forks of BTC also involved have made the crash even more noteworthy. While it might appear that the sceptics were right afterward, most HODLers and cryptocurrency enthusiasts retain their faith in the market and point out the fact that this may not been the worst crash in term of percentage crashes.
The Worst Affected Investors
The early birds to the Bitcoin market might be able to afford being ‘blasé’ about it, because the prices are still way higher than how much they bought theirs. However, the recent stream of Crypto market influx who went in during the boom of last year will not be able to share their sentiments. Most of the people who rushed in with everything they had late last year to get a piece of the pie as it boomed are now left high and dry, holding their hats in their hands. Stories of investors taking out loans or putting in life-savings only to be running at almost 90% loss a year later have become the talk of the hour.
The worst hit investors seem to be the ones who invested in altcoins, based on promises of software sharing or other benefits. The coins have crashed, none of the initial offerings on which the coins/tokens were offered where honored, and investors are left feeling cheated and with virtually valueless coins.
Despite the crash, Bitcoin still remains the most valuable cryptocurrency, as some exchanges are trading and dealing in bitcoin despite price crashes. Ethereum is holding its own quite a bit and sometimes tops as the better investment.